Grove Developments Ltd v S&T (UK) Ltd

Grove Developments Ltd v S&T (UK) Ltd

Grove’s Pay Less Notice was valid as it specified the sum due and the basis of calculation by clear reference to a previously sent document, which the reasonable recipient would have understood. The third adjudication award in S&T’s favour is not enforceable as the court has now finally determined the underlying dispute. After paying the sum stated as due, Grove is entitled to commence a separate adjudication to determine the 'true' value of the interim application. The liquidated damages notices were valid as they were served and received in the correct sequence, with no contractual requirement for a minimum interval between them.

Parties
Claimant: Grove Developments Limited; Defendant: S&T(UK) Limited
Jurisdiction
England and Wales
Judgment Date
27 February 2018
Procedural Posture
Construction Contract Dispute (part 8 Proceedings and Enforcement) / Judgment After Trial of Preliminary Issues
Outcome
All issues determined in favour of Grove Developments Limited. S&T(UK) Limited’s claims dismissed.
Legal Topics
Validity of Pay Less Notice, Adjudication Enforcement, Liquidated Damages, Interim Payments, Interpretation of Contract Terms
Construction Law Contract Law Adjudication Law Validity of Pay Less Notice Adjudication Enforcement Liquidated Damages Interim Payments Interpretation of Contract Terms

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 5 Authorities cited 25 Party arguments 2 Amounts and remedies 5
Sign in to unlock

Parties

Grove Developments Limited

Claimant

S&T(UK) Limited

Defendant

Procedural Posture

Construction Contract Dispute (part 8 Proceedings and Enforcement) / Judgment After Trial of Preliminary Issues

Legal Issues

  1. 1 Whether Grove’s Pay Less Notice complied with Clause 4.10.2.1 of the contract
  2. 2 Whether the third adjudication award should be enforced even if the Pay Less Notice specified the basis of calculation
  3. 3 Whether Grove is entitled to commence a claim for a financial adjustment on the basis of a fresh valuation after paying the sum stated as due

Ratio Decidendi

Grove’s Pay Less Notice was valid as it specified the sum due and the basis of calculation by clear reference to a previously sent document, which the reasonable recipient would have understood. The third adjudication award in S&T’s favour is not enforceable as the court has now finally determined the underlying dispute. After paying the sum stated as due, Grove is entitled to commence a separate adjudication to determine the 'true' value of the interim application. The liquidated damages notices were valid as they were served and received in the correct sequence, with no contractual requirement for a minimum interval between them.

Court Disposition

All issues determined in favour of Grove Developments Limited. S&T(UK) Limited’s claims dismissed.

Orders

  • Declaration that Grove’s Pay Less Notice of 18 April 2017 was valid and complied with Clause 4.10.2.1 of the contract.
  • Declaration that the third adjudication decision in favour of S&T(UK) Limited is not enforceable.